- In 2022, the country saw decade-high inflation of 7.2%, which weakened the South African rand and made it harder for investors to grow their wealth in a depreciating currency.
- Revix crypto investment bundles allow investors to invest in a basket of cryptocurrencies.
- The inflation shield bundle has performed very well.
As the global economy becomes more uncertain, many investors seek ways to protect their wealth against inflation and currency depreciation. South Africans struggle as the Rand has depreciated 20% in the last 12 months, 36.5% in the last five years and 58.5% in the last ten years. It doesn’t require a maths genius to see that the numbers aren’t telling a good story.
In recent years, cryptocurrencies have emerged as a potential option for investors seeking to hedge against these risks. But can cryptos be used by ordinary investors to protect their wealth in a weakening economy? Revix has created what they think is the answer with cryptocurrency investment bundles.
South African economy losing lustre
To answer this question, it’s important to understand the major risk factors investors face in South Africa and worldwide. For South African investors, inflation is a major concern. Currency depreciation is also a big risk, but other factors exist, such as interest rates, load shedding, and greylisting.
Inflation on the rise
The inflation rate has been consistently high in recent years. In 2022, the country saw decade-high inflation of 7.2%, which weakened the South African rand and made it harder for investors to grow their wealth in a depreciating currency. Although there are indications that inflation may cool off in the coming years, it tends to remain sticky for a long time, so investors may need to look for alternative options to protect their wealth.
Interest rates have followed
Interest rates are another factor that investors need to consider. As interest rates rise, funding for companies becomes more expensive, which can reduce company profits and impact the stock market. In South Africa, interest rates have been raised eight times a row, and analysts predict they may remain high for longer than expected. This could lead to a falling stock market and make it more difficult for investors to grow their wealth.
Power challenges mount
Load shedding is a problem that has plagued South Africa for many years, and it can significantly impact economic activity, company growth, and tax collection. Without power, it’s hard for businesses to operate, and the cost of running a business increases significantly. This can lead to lower profits and a falling stock market, making it difficult for investors to grow their wealth.
Finally, greylisting is a recent development that has added to the economic uncertainty in South Africa. When a country is greylisted by the Financial Action Task Force (FATF), linkages to the global financial system become more difficult, and foreign investment may be discouraged. This can lead to a weaker currency and a falling stock market, making it more challenging for investors to grow their wealth.
Given these risks, it’s clear that investors in South Africa and around the world need to look for alternative options to protect their wealth. Cryptocurrencies may be one potential option. While cryptos are generally perceived as high-risk, they can also be used to hedge against risks like inflation and currency depreciation.
Revix crypto investment bundles
Revix crypto investment bundles allow investors to invest in a basket of cryptocurrencies. Like Index funds, mutual funds and exchange-traded funds, they allow cryptocurrency investors to diversify their investments. Instead of buying into a group of individual cryptos, investors buy into a fund that invests in a group of cryptocurrencies.
Revix Top 10 crypto bundle
Revix offers a Top 10 Bundle which invests in the top 10 cryptocurrencies by market capitalization. Namely 11.01% Bitcoin (BTC), Ethereum 10.71% (ETH), BNB Chain 10.49% (BNB), Ripple 10.07% (XRP), Cardano 9.66% (ADA), 9.93% Polygon (MATIC), 9.55% Solana (SOL), 9.9% Polkadot (DOT), 8.85% Litecoin (LTC) and 9.82% Tron.
As you can see, the offer is quite attractive. The ability to own the top 10 cryptocurrencies in one purchase. Revix also rebalances the portfolio to match changes in the market. So you do not have to buy and sell crypto to match the current market; they do all the work for you.
Revix Smart Contract Bundle
The Smart Contract Bundle invests in a portfolio of cryptocurrencies focused on supply chains and trading networks. The fund currently consists of 21.29 Ethereum (ETH), 20.85% BNB Chain (BNB), 19.20% Cardano (ADA), 18.98% Solana (SOL), and 19.68% Polkadot (DOT).
The Revix Payment Bundle
The payment bundle invests in the top cryptocurrencies focused on payments and payment processing. The current constituents are 21.96% Bitcoin (BTC), 20.09% Ripple (XRP), 17.64% Litecoin (LTC), 20.07% Bitcoin Cash (BCH) and 20.22% Stellar (XLM).
Revix Inflation Shield Bundle
Revix Inflation shield bundle offers the best of both worlds, figuratively speaking. The bundle invests in a weighted portfolio of Bitcoin and Paxos Gold. Since the crypto winter hit, all other bundles have been negative, but the Inflation shield Bundle is up 7.43%. That’s respectable in the current climate.
Revix DeFi Bundle
The Revix DeFi bundle is a market-weighted bundle of the top 10 DeFi cryptocurrencies. The focus is on cryptos offering peer-to-peer finance solutions. The current bundle consists of 37% Uniswap (UNI), 16% Lido DAO, 8% Aave (AAVE), 5% Frax Share, 5% MKR,5% Pancake Swap, 5% Curve Dao Token, 5% Synthetix, 5% GMX and 3% THORChain.
Benefits of Cryptocurrency Investments
One of the main benefits of cryptocurrencies is that they are decentralized and not controlled by any government or central bank. This means that they are not subject to the same inflationary pressures as traditional currencies, and their value may be less affected by the economic conditions in any particular country.
Another benefit of cryptocurrencies is that they are highly liquid and can be easily bought and sold on cryptocurrency exchanges. This means that investors can quickly move in and out of positions, which can be helpful in a volatile market.
Risks of Cryptocurrency Investments
Of course, it’s important to remember that cryptocurrencies are still a relatively new and untested asset class. They can be highly volatile, and their value can fluctuate significantly over short periods. This means that investors should be prepared for the possibility of significant losses if they invest in cryptos.
Despite these risks, many investors are turning to cryptocurrencies as a potential way to protect their wealth in a weakening economy. By diversifying their portfolios and including some exposure to cryptocurrencies, investors may be able to mitigate some of the risks associated with inflation, currency depreciation, and other economic factors.
In conclusion, while cryptocurrencies are not without risks, they may be a potential for investors. Current returns on Revix show the effects of the crypto winter. That said, the inflation shield bundle has performed very well. The regulation of cryptocurrency in South Africa has opened up opportunities for South Africans to take advantage of cryptocurrencies as digital assets.